Cape Verde's public debt grew 14% in the third quarter of 2020 14,3%

The value now stands at 12.053,3 million escudos.

The public debt service of the central government of Cape Verde reached 2020 million escudos in the third quarter of 12.053,3, representing an increase of 14,3% over the previous year in the same period.

The information was advanced this Tuesday by the Cape Verdean Executive in an information note, in which it specifies that the “increase was more consistent in the service of the internal debt, which grew 29,6% in relation to the previous period, which corresponds in absolute terms to 1.660,6 million escudos.

The increase in domestic debt service is justified by the executive due to the amortization profile of Treasury bills, "which are generally of shorter terms and with higher interest values, when compared to those of external debt".

Regarding the debt stock of the Government of Cape Verde at the end of the third quarter of 2020, it stood at 252.755,5 million escudos, representing 137,6% of the GDP (Gross Domestic Product) of the year, registering an increase of 17,5 , XNUMX percentage points in relation to the stock / GDP of the same period of the previous year.

This drop in GDP and nominal increase in debt is supported by the Government as a consequence of the impact of the economic crisis caused by the covid-19 pandemic.

“Its absolute growth was CVE 15.333,2 million, equivalent to a positive variation of 6,5% compared to the same quarter of the previous year, which is justified by the combination of the following factors: new resources mobilized; exchange variation and amortizations for the period under analysis, ”says the government note.

Meanwhile, in the Emissions and Disbursements chapter, it appears that in the third quarter of 2020 the global value corresponding to the new gross debt of the Central Government, to finance the State Budget, was 20.259,1 million CVE, equivalent to a slight increase 1,5% compared to the same period last year.

“Disbursements of external debt contributed 10.049,0 million CVE to the total, representing an increase of 29,1% over the previous period. While issues of domestic debt securities accounted for 10.210,1 million CVE, registering a decrease of 16,1% in relation to the same period in 2019 ”, explains the note.

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